On December 14 the US State Department announced sanctions against the Turkish defence industry, after Ankara's purchase of the Russian S-400 anti-aircraft system.
The move was based on a 2017 piece of legislation, the Countering America's Adversaries through Sanctions Act, penalising Turkey for finalising the $2.5 billion arms deal.
Secretary of State Mike Pompeo said that Ankara had "knowingly engaged in a significant transaction with Rosoboronexport, Russia’s main arms export entity, by procuring the S-400 surface-to-air missile system".
But why has this system – supposedly cutting-edge technology, created so much consternation in Washington? Here is some background on the S-400, what its makers claim it is capable of, and why it might not be as potent as some claim.
What is the S-400 capable of?
A mobile air-defence missile battery, it is equipped with a powerful radar system which can track up to 80 targets simultaneously, engaging them with high-velocity, high-altitude missiles at very long ranges. The radars with the system also operate together on different frequencies, allowing for more accurate detection of enemy targets.
With this array of capabilities, the S-400 ensures that attacking aircraft will struggle to get close to enemy airspace, let alone successfully carry out a bombing raid. Its most recent missiles, including the 40N6, can engage targets at altitudes of 24,000 metres, up to 400 kilometres away – or so the makers claim.
More concerning for Nato, the long range of the S-400 and its predecessor the S-300 is so great that while technically a defensive weapon, it can engage targets over foreign territory, potentially an offensive capability.
Why is the US so worried by the S-400?
Initially, Washington was concerned that Turkey could test the S-400's powerful radar on F-35 jets, which the Turks intended to buy and manufacture domestically. This was a red line for Washington, which closely guards the F-35s stealth technology and complex avionics. US exports of F-35s to Turkey were subsequently cancelled before the first aircraft arrived.
But Washington is no doubt concerned for its Greek allies —also in Nato —who operate older aircraft than the stealthy F-35: the current Greek aircraft inventory could be vulnerable to the S-400.
So the S-400 represents an unstoppable threat to the US, and this is why they are concerned?
This depends on who you ask. For one thing, the version sold to Turkey may not have the same features as S-400s in Russian inventories.
"The S-400 system that Turkey has purchased is likely to lack some of the more advanced software and radar features compared to the Russian Armed Forces version - exports are usually downgraded, let alone when given to a Nato member state," according to Justin Bronk, a research fellow at the Royal United Services Institute in London.
Nato was able to study an S-300 after Cyprus bought the system from Russia at the end of the 1990s. In what is arguably a historical irony, Turkey threatened to attack Cyprus unless the order was cancelled.
The crisis was finally defused when the system was transferred to Greece, allowing Nato to examine the system – albeit a predecessor of the S-400. In 2014, the Greek air force even test fired its ageing S-300. Since the Cyprus S-300 crisis, Israel, the US and other Nato countries have made herculean efforts to devise countermeasures to defeat the S-300 (used by Iran and Syria) and the S-400 system.
Aircraft such as the F-35 and weapons like the Joint Air-to-Surface Standoff Missile (JASSM) were developed, the latter being a cruise missile that uses stealth technology, potentially evading the S-400’s powerful radar.
Nineteen JASSM missiles were fired at the Syrian regime in the spring of 2018, in response to a Syrian chemical weapons attack that killed civilians. At the time, Russia had deployed S-300 and S-400 systems stationed in Syria. The use of the JASSM therefore, was in anticipation that the Russians and Syrians would try to shoot down some of the older cruise missiles used by the Americans, using the S-400 and S-300.
So the system has limitations?
While the S-400 could be lethal against a badly planned attack, its maximum range may depend on what other equipment its users decide to deploy in tandem with the system. This is because of the curvature of the Earth, which limits radar projection to the horizon. Very low-flying objects, such as cruise missiles or even aircraft, may therefore not be detectable until they are close enough to attack the system. At low level, this range could be as little as 40km.
For the S-400 to reach its full potential, it needs to be integrated with a large number of other radar systems, including airborne radar such as airborne early warning and control planes, or Awac planes, supplemented by smaller air defence systems. This is something the Russians have invested a lot of time and money in — an "integrated air defence" system, or IADs. Turkey may have a long way to go before having such capability.
"A solitary S-400 system, while very capable against a wide range of aerial and ballistic targets, is far less capable than a system integrated within a wider layered IADS," according to Mr Bronk.
Mr Bronk says that Turkey's promise to keep the S-400 separate from Nato's air defence network will critically limit the system, denying it the level of integration enjoyed by S-400s in Russian service.
"The S-400 in Turkish service will be far less capable than Russian equivalents working as a core lynchpin of a broader IADS," he says.
But new technology is also in service that could pose a serious threat to the S-400 on the battlefield, according to Mr Bronk.
"Loitering munitions pose a serious threat if launch platforms can get close enough to release significant numbers of them, which can overwhelm the self-defence capabilities of the system," he says, referring to munitions that were commonly referred to as "suicide drones."
How to join and use Abu Dhabi’s public libraries
• There are six libraries in Abu Dhabi emirate run by the Department of Culture and Tourism, including one in Al Ain and Al Dhafra.
• Libraries are free to visit and visitors can consult books, use online resources and study there. Most are open from 8am to 8pm on weekdays, closed on Fridays and have variable hours on Saturdays, except for Qasr Al Watan which is open from 10am to 8pm every day.
• In order to borrow books, visitors must join the service by providing a passport photograph, Emirates ID and a refundable deposit of Dh400. Members can borrow five books for three weeks, all of which are renewable up to two times online.
• If users do not wish to pay the fee, they can still use the library’s electronic resources for free by simply registering on the website. Once registered, a username and password is provided, allowing remote access.
• For more information visit the library network's website.
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”